HS2 AND WALES

HS2 has been branded an “affront to the Welsh taxpayer” by Plaid Cymru’s Transport Spokesperson Jonathan Edwards MP, after new analysis showed costs spiralling to over £150 bn.

Analysis by the Midlands Economic Forum (MEF) shows that the original construction cost of £30 bn could reach as much as £106.35 bn. This excludes further costs such as local infrastructure connection terminal (£43 bn) and rolling stock (£2.5 bn).

Mr Edwards said that Welsh taxpayers would be paying for an English railway, without receiving any benefit. The Westminster Government has already refused to give Wales any Barnett Consequentials – the normal mechanism by which a population share increase in funding for Wales is received relative to spending in England – for the project.

Transport expert Professor Stuart Cole has also demonstrated how HS2 will have negative consequences for Wales, particularly in the south of the country, as journey times to cities in the midlands and north of England are reduced and new technology encourages companies to areas with HS2 stations. Professor Cole’s analysis was supported by a report from Greengauge 21, which drew on analysis by KPMG, that found that HS2 could reduce employment growth in Wales by 21,000 jobs between 2007 and 2040.

The MEF report also claims the power requirement costs of HS2 would be approximately one third of the output of Hinckley C, and would cost £5 bn.

The overall cost of HS2, as calculated by MEF, would be £156.95 bn, which equates to 7.4% of UK GDP in 2018.  

Commenting, Jonathan Edwards MP said:

“HS2 has always been bad news for Wales – independent analysis shows it will mean an economic hit for our country. These latest figures, however, shows how much of an affront to the Welsh taxpayer HS2 really is.

“When costs are spiralling over £150bn for a railway between English cities, the Westminster Government remains committed. But when it comes to Wales, the British state can’t find the money to electrify a few miles of track between our two biggest cities.

“Welsh infrastructure is creaking. You can’t even get from the north to the south without going into a different country.

“Not only is this state of affairs symbolic of Westminster’s disdain for Wales, it is hurting our economy. Wales is stuck with a 20th century transport system, whilst helping fund the development of a multi-billion pound new transport system in England.

“We simply cannot trust another country to dictate our transport policy for any longer.”

ENDS

Note

• Professor Stuart Cole’s Comments in relation to HS2 detrimental impact on Wales (para. 42) - https://publications.parliament.uk/pa/cm201719/cmselect/cmwelaf/403/40307.htm
• Greengauge 21 report - http://www.greengauge21.net/consequences-for-employment-and-economic-growth/

A FAIR SHARE FOR WALES?

Plaid Cymru’s Transport spokesperson, Jonathan Edwards MP 

Plaid Cymru has responded to the UK Government’s announcement that it will launch a £1 billion “roads revolution”, demanding that Wales gets its fair share.

The £1 billion of spending in England will be ring-fenced from the £6 billion raised annually from vehicle excise duty, known as road tax, which is paid by taxpayers from all UK countries, not just England.

£1 billion of spending on England only projects would trigger around £50 million for Wales under the Barnett Formula.

Plaid Cymru has called on the Welsh Government to ensure this money is spent on improving Wales’ roads.

Plaid Cymru’s Transport spokesperson, Jonathan Edwards said:

“Wales’ roads are shamefully inadequate and our country is disconnected as a result of chronic underinvestment. 

“The £1 billion for England will be funded from the road tax, which is paid by Welsh taxpayers as well as English taxpayers. 

“It is vital that Wales receives its fair share of this investment which should be around £50 million a year. The UK Treasury cannot be allowed to get away with an accounting trick as they have in the past and deny Wales our rightful share by describing England-only investments as investments for the whole of the UK. 

“The Welsh Government must also commit to spending this money on rebuilding Wales’ road network, connecting our towns and cities and reducing congestion.

"Wales should not have to rely on decisions made by English Ministers for English domestic issues in order to get on with the job of rebuilding our country. We should be free to make those decisions ourselves, invest in our country and upgrade our roads and railways."